Most wholesale deals I see are overstating ARV, understating rehab budget, over estimating true rental rates.  

2 The seller/realtor instead communicates that he needs a few days to consider the verbal offer, and then does proper comps and either makes an off market deal with the OP(now that he is prepared)or notifies him that he's taking to market.ALSO...to all the realtors....are realtor ProForma numbers always overstated, understated, or dead on accurate??????

In my state we are not required to turn on our heating systems until October 31 under state law.

Based on our experience, We are pretty sure their expenses are understated (they're at 23% of gross income and almost always are closer to 30%). 

I'm reading USC 2410:...Where a sale of real estate is made to satisfy a lien prior to that of the United States, the United States shall have one year from the date of sale within which to redeem, except that with respect to a lien arising under the internal revenue laws the period shall be 120 days or the period allowable for redemption under State law...All good on the IRS 120 days piece, but I'm not clear on the 1 year piece.

Usually under state law, late fees will have some cap and making additional charges in connection with such a payment will be viewed as part of the late fee.

http://www.deptofnumbers.com/rent/indiana/indianapolis/Your 50% guesstimate includes t&i so you are understating your cash flow.  

This is really important & the cslb is under state consumer affairs.

As long as you clearly identify your role in the transaction, disclose the wholesale price and original price, and be very clear about how the transaction works off-market, you are not violating your requirements under state law for real estate.

@Victor Baronich if you're evaluating your returns on the basis of cash flow a lone then you are grossly understating your returns.